Ikea reports UK sales drop

Swedish furniture giant Ikea today became the latest retailer to feel the pinch in the UK as battered consumer confidence and a sluggish housing market hit sales.

The chain, which has 18 stores in the UK, said like-for-like sales in the year to August 31 fell 3% to £1.15bn (€1.33bn), as the consumer spending squeeze, driven by higher prices and lower wage growth, took hold.